Emergency Manager lawsuit dismissed

A lawsuit that seeks to block Gov. Rick Snyder’s appointment of Detroit EFM Kevyn Orr has been dismissed.

The grievance filed by Citizens United Against Corrupt Government, alleged that the governor’s recruitment and interviewing of emergency manager candidates was unlawful.

Andrew Patersonis a representive for the group that is headed by activist Robert Davis. He said the suit became “moot” after a Lansing Circuit Court judge refused last month to hold a hearing by the state’s Emergency Loan Board before Orr’s hiring. According to Assistant Attorney General Margaret Nelson, the group waited too long to sue.

Detroiters have expressed opposition through public protests and legal challenges since Orr’s selection and hiring on March 14. The newly-appointed EFM has the job of fixing Detroit’s finances, which include a $327 million budget deficit.

Michigan law stipulates than an emergency manager has the power to develop financial plans, renegotiate labor contracts, revise and approve budgets to help control spending, sell off some city assets and suspend elected officials’ salaries.

A recent proposal to cut city council’s hours to part-time appears to be Orr’s first step in managing costs. What will be his next?